Kentucky Gap Analysis MASTER

8/7/2019 Kentucky Gap Analysis MASTER

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Kentucky Gap Analysis 1


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Building Codes Assistance Project (BCAP)

BCAP is a non-profit advocacy organization established in 1994 as a joint initiative of the Alliance to Save

Energy, the American Council for an Energy-Efficient Economy, and the Natural Resources Defense

Council. BCAP focuses on providing state and local governments in the U.S., as well as stakeholder

organizations, with support on code adoption and implementation through direct assistance, research,data analysis, and coordination with other activities and allies. With over sixteen years of experience

supporting numerous state energy offices and city building departments, along with tracking code

activities across the country, BCAP is well-positioned to assist in local and statewide activity to advance

codes. As a trusted resource, BCAP is able to identify and navigate past policy and programmatic pitfalls

to help states and jurisdictions put the best possible strategy in place to improve efficiency in both new

and existing buildings. Our work pulls together local efforts, identifies national-scale issues, and provides

a broad perspective, unbiased by corporate/material interests. BCAP also hosts OCEANan online

international best practice network for energy codesand is increasingly working abroad to gather and

share best practices that provide value across organizations.


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Table of Contents

Table of Contents ...............................................................................................................................3

Acronyms and Abbreviations ..............................................................................................................5

Executive Summary ............................................................................................................................6

Summary Table of Recommendations ................................................................................................7

Introduction ......................................................................................................................................8

State Overview.............................................................................................................................10

Construction Overview ....................................................................................................................... 11

Energy Portfolio .................................................................................................................................. 13

Potential Savings from Energy Codes ................................................................................................. 14

Cost Increment .................................................................................................................................... 15

Adoption .........................................................................................................................................15

Federal Policy ...............................................................................................................................15

EPAct ................................................................................................................................................... 16

The Recovery Act ................................................................................................................................ 16

State Policy ..................................................................................................................................17

Political Environment and Energy Code Adoption .............................................................................. 17

Code Adoption Process ....................................................................................................................... 18

Recent Energy Codes-related Legislation ........................................................................................... 19

Other Building Codes .......................................................................................................................... 21

Energy Codes for State-funded Facilities ............................................................................................ 22

Statewide Climate Change & Energy Efficiency Initiatives ................................................................. 23

Overview of Green and Above-Code Programs .................................................................................. 24

Local Policy ..................................................................................................................................26

Local Adoption Challenges .................................................................................................................. 26

Energy Codes for Municipal-funded Facilities .................................................................................... 27

Local Climate Change Initiatives ......................................................................................................... 27

Overview of Local Green and Above-Code Building Programs ........................................................... 28

Current Best Practices ......................................................................................................................... 28

Adoption Summary ......................................................................................................................29

Implementation ...............................................................................................................................29


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Overview of State and Local Implementation Policies .................................................................... 29

Outreach ............................................................................................................................................. 30

States Role in Promoting Codes ......................................................................................................... 31

Local Governments Role in Promoting Codes.................................................................................... 32

Stakeholders Role in Promoting Codes .............................................................................................. 32

Enforcement Community ..............................................................................................................34

Overview of Enforcement Infrastructure ............................................................................................ 34

Certification and/or Licensing ............................................................................................................. 37

Training and CEUs ............................................................................................................................... 38

Third Party Infrastructure ................................................................................................................... 38

Local Implementation Spotlight .......................................................................................................... 39

Design/Construction Community ..................................................................................................39

Overview of Design/Construction Community Infrastructure ............................................................ 40

Certification, Licensing, Training, and CEUs ........................................................................................ 42

Compliance Measurement and Verification ................................................................................... 43

Past and Current Activities .................................................................................................................. 44

Current Best Practices ..................................................................................................................45

Conclusion .......................................................................................................................................46

Acknowledgments ...........................................................................................................................47

Appendix A ......................................................................................................................................48

References .......................................................................................................................................49


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Acronyms and Abbreviations

APC Appalachian Carbon Partnership

ARRA/Recovery Act American Recovery and Reinvestment Act of 2009

ASHRAE American Society of Heating, Refrigerating, and Air-Conditioning Engineers

BCAP Building Codes Assistance Project

BPI Building Performance Institute

CAAK Code Administrators Association of Kentucky

CEUs Continuing Education Units

DBCE - Division of Building Codes Enforcement

DEC Division of Efficiency and Conservation

DEDI Department for Energy Development and Independence

DOE Department of Energy

ECAP Energy Code Ambassadors Program

EEC - Energy and Environment Cabinet

EECBG Energy Efficiency and Conservation Block Grants

EERS Energy Efficient Resource Standard

EPA U.S. Environmental Protection Agency

HBAK Home Builders Association of Kentucky

HBC - Kentucky Department of Housing, Buildings and Construction

HERS Home Energy Rating System

HVAC Heating, Ventilation, Air Conditioning

IBC International Building Code

ICC International Code Council

IECC International Energy Conservation Code

IGCC International Green Construction Code

IRC International Residential Code

KBC - Kentucky Building Code

KCAPC - Kentucky Climate Action Plan Council

KEEPS - Kentucky Energy Efficiency Program for Schools

KHC - Kentucky Housing Corporation

KPPC - Kentucky Pollution Prevention Center

KRC - Kentucky Residential Code

KySEA Kentucky Sustainable Energy Alliance

LEED Leadership in Energy and Environmental DesignLRC - Legislative Research Commission

MACED - Mountain Association for Community Economic Development

MEC Model Energy Code

MEEA Midwest Energy Efficiency Alliance

NAAB - National Architectural Accreditation Board


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NAHB National Association of Home Builders

OCEAN Online Code Environment and Advocacy Network

PBF Public Benefit Fund

RECA Responsible Energy Codes Alliance

RESNET Residential Energy Services Network

SEEA Southeast Energy Efficiency Alliance

SEP State Energy Program

USGBC U.S. Green Building Council

Executive Summary

The purpose of the Kentucky Gap Analysis Report is twofold: 1) document and analyze the strengths and

weaknesses of the states existing energy code adoption and implementation infrastructure and policies;

2) recommend potential actions state agencies, local jurisdictions, and other stakeholders can take to

achieve 100 percent compliance with the model energy codes. The report is organized into four

sections: Introduction, Adoption, Implementation, and Conclusion. The Adoption and Implementation

sections both conclude by listing some of the states current best practices and making multiple

recommendations for actions that would improve energy code compliance.

The Introduction section provides an overview of relevant state demographics and the impact of the

construction boom and subsequent decline, including that the states energy use is projected to grow by

about 40 percent between 2008 and 2025. However, BCAP estimates that if Kentucky began

implementing the 2009 IECC and Standard 90.1-2007 statewide in 2011 (making incremental steps

toward 90 percent compliance in 2017), by 2030 the Commonwealth would save $277 million in annual

energy costs for households and businesses.1

The monetary saving derived from energy codes increasesa consumers purchasing power, and helps expand the states economy by keeping local dollars in

Kentucky. This section describes the importance of energy code adoption, implementation, and

enforcement, noting that the Commonwealth of Kentucky is an energy producing state, with one of the

lowest rates of electricity in the country. However, spikes do occur. For example, this winter, the

Kentucky Public Service Commission has received hundreds of complaints from individuals whose bills

rose dramatically from November to January.2

The Adoption section includes descriptions of federal, state, and local polices that influence energycodes in Kentucky. The role of state building standards, green building, and climate change initiatives are

described. Notably, the Commonwealth of Kentucky has a head start on energy efficiency, through an

aggressive energy strategy developed under Governor Beshear, which has launched discussions and

interest in considering energy efficiency, renewable energy, and energy independence in preparation of

a forthcoming Climate Action Plan. This section outlines eight major recommendations, such as:

By reducing demand for energy within Kentucky, more

coal would be available for exporting to neighboring states where demand and prices are higher, thus

contributing to the states economy, while reducing energy bills for families and businesses in Kentucky.

Ensuring visual, in-person inspections are conducted by state inspectors;


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Adopting an automatic review/update process for future iterations of the model energy code;

Allowing local jurisdictions to implement a stretch code.

The Implementation section covers the many ways in which state and local agencies, the design and

construction industries, utilities, and other stakeholders work to promote the adopted energy codes,

establish efficient, feasible, and cost-effective enforcement and compliance infrastructures, andadequately prepare code officials and building professionals to carry out their responsibilities. The

section includes 13 recommendations for a variety of different stakeholder groups. For example, in

order to achieve compliance with the IECC 2009 by 2017, the state will need to:

Provide education and training to improve the ability of builders and contractors to build higher

performing buildings and recognize/award exemplary builders;

Provide support for code officials via additional training, checklists, ready-made materials and

inspection schedules that ensure energy code features are visible and inspected;

Increase public demand for higher performing buildings to raise awareness of the benefits of

energy efficiency.

The Conclusion section provides a summary of the economic, societal, and environmental benefits of

energy code adoption and implementation in Kentucky. Appendix A offers a list of other DOE and PNNL

energy code resources. The table below summarizes the recommendations made in this report.

Summary Table of Recommendations

Adoption

State Policy

The state should adopt an automatic review and update process for future iterations of the model

energy code (p. 18)

The state should consider policies that will offset the higher upfront cost of above-code energy

requirements such as Energy Efficient Resource Standard (EERS) or Public Benefit Fund (PBF). (p. 19)

The Department of Education should provide simplified information on its website (p. 20)

Provide technical assistance to schools as they move beyond behavioral changes and consider energy

efficiency improvements that would provide long-lasting energy savings to the school (p. 21)

The Finance and Administration Cabinet should require that either (1) a third-party LEED certified

inspector visually inspects every building to ensure they comply with LEED standards; or (2) the state

should consider having state inspectors become Certified LEED accredited professionals so that they

may assure that buildings meet the state mandate. (p. 22)

Local Policy

Offer local jurisdictions the option to adopt stretch codes or codes higher than the IECC 2009 and utilize

third-party certification programs. (p. 26-27)

Implementation

Outreach

Provide ready-made information on such programs to building departments (p. 30)

Engage contractors and architects and other LEED-certified or similar professionals in the promotion of

energy efficiency, by providing them with ready-made marketing materials (p. 30)


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Raise public demand for energy efficiency in housing by offering courses on energy efficiency via

partnerships with groups that reach more rural areas (p. 31)

Seek publicity (e.g., give awards, distribute press releases) for builders who meet the Builders Challenge

qualifications in order to raise public awareness and drive demand for energy efficiency (p. 31)

Launch a statewide campaign including public relations efforts and earned media radio and TV

interviews, news releases and articles all with the intent to raise awareness of the benefits of energyefficiency. (p. 31)

Give public acknowledgement to those local governments that are taking leadership roles in adopting

more stringent codes (p. 31-32)

Engage Energy Code Ambassadors (p. 32)

Training

Assure that local building departments are well educated in energy codes by increasing the knowledge

of building officials. (p. 38)

The HBC should require that local building department inspectors are educated in energy codes by

requiring code officials to pass ICC certification tests. (p. 38)

Enforcement Community

State inspectors should conduct visual inspections of energy features. (p. 36)Reduce permit fees for buildings that are LEED (or equivalent) certified, ENERGY STAR or Building

America qualified. (p. 36)

Accept the Builders Challenge qualifications or ENERGY STAR certification in place of the traditional

energy code compliance path. (p. 36)

Regional inspectors should be made aware that energy codes should be considered as high a priority as

other life/safety codes (p. 36)

Consider options to ensure statewide enforcement of the residential energy code. (p. 37)

Design/Construction Community

Conduct outreach to builders to encourage more efficient construction practices (p. 40)

Work to improve architects understanding of energy codes (p. 42)

Educate builders (p. 42)Work with the HBA to offer encourage members to attend energy efficiency and building courses (p. 43)

Compliance Measurement & Verification

Determine current level of compliance with energy code. (p. 44)

As part of educating policy-makers in the state, a Public Benefit Fund should be advocated for. (p. 44)

Introduction

In the United States, our demand for energy in buildings accounts for 72 percent of electricity use and

40 percent of total energy use, and is responsible for 40 percent of U.S. Co2

emissions.3

Help expand a states economy by keeping local dollars in Kentucky as consumers and

businesses save money;

As one of the

principal instruments in a states policy toolbox, energy codes benefit society in a number of important

ways, as they:

Improve indoor air quality.

Lessen peak energy demand, delaying the need for building expensive new power plants;


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Increase the reliability of our grid, as lowered demand reduces stress on an aging energy grid

system; and

Reduce emissions of greenhouse gas emissions and air and water pollution;

Recent improvements in the stringency of the model energy codes and the development of the first

green codescontinue to raise the bar for energy-efficient design and construction to levels that werealmost unimaginable a few short years ago. While Kentuckys demand for energy is projected to grow by

about 40 percent between 2008 and 2025,4

Electricity use is a leading generator of air pollution. In Kentucky, the per capita consumption of

residential electricity is among the highest in the nation, and electricity is the primary energy source for

home heating in more than two-fifths of Kentucky households.

retail and office buildings constructed to meet the

requirements of the IECC can be over 30 percent more energy efficient than typical buildings not

constructed to meet national model energy standards.

5 Energy codes are a proven, cost-

effective policy option for addressing these and other environmental impacts. BCAP estimates that if

Kentucky began implementing the 2009 IECC and Standard 90.1-2007 statewide in 2011 (makingincremental steps toward 90 percent compliance in 2017), by 2030 the Commonwealth would reduce

CO2 emissions by 1.3 metric tons.6

Today, energy codes are increasingly perceived as a viable and cost-effective component of a

comprehensive solution to our current economic, environmental, and energy concerns. The more

favorable environment for more stringent codes is part of a larger transformation in the way advocates,

policymakers, industry and utility representatives, and the general public view energy efficiency. Energy

efficiency is the cheapest, cleanest energy source available to us today. Moreover, the average lifespan

of a building is roughly 50 years, meaning that current building energy policies will affect energy

consumption through 2060 and beyond.

Yet, for all this recent progress and promise, energy codes are still falling well short of their potential. In

jurisdictions across the country, energy code enforcement and compliance remain woefully insufficient

or completely absent. While development and adoption are the necessary first steps of the energy

codes process, they alone do not guarantee compliance. To ensure that energy codes accomplish their

missions to reduce energy use and save money, states must develop and carry out effective and realistic

energy code implementation strategies.

In collaboration with the U.S. Department of Energy, BCAP has undertaken a new program to improve

energy code compliance in 15 states, including Kentucky, by analyzing the gaps in the existing energy

code infrastructure and practices and providing compliance planning assistance and on-the-groundtechnical support to energy code stakeholders in the state. The first phase of the program is the Gap

Analysis Report, which identifies barriers to successful energy code adoption and implementation,

opportunities for improvement, available resources, and key stakeholders and potential partnerships.


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State Overview

The Commonwealth of Kentucky is nestled in between two of the nations most expansive physical

features, the Appalachian Mountains to the East and the Mississippi River to the West. With a

population of just over 4.3 million people, the Commonwealth is ranked 26th in terms of size.7

Like other states, Kentucky has suffered from the economic downturn and has a high unemployment

rate at 10.6 percent. In addition, job growth in Kentucky is expected to continue to be low.

Construction industries are suffering with expected construction to be nearly 40% lower in 2010 than in

2009.

Just over

a quarter of its population lives in the greater Louisville metro area.

Below are some quick facts about Kentucky:8

Population, 2009 4,314,113

New Single Family Housing Units, 2009 5,470

New Single Family Housing Units, 2008 6,452New Nonresidential Private Construction Value, 2008 $2,504 million

Energy Consumption Per Capita, 2008 (Rank) 462.4 million Btu (7th)

Total Energy Consumption, 2008 1,983 trillion Btu

Energy Expenditures, 2008 $23,264 million dollars

Primary Energy Source, 2007 Coal (92.9%)

Energy Importing or Exporting State (+/- BTU, 2008) Exporting State (1,137 trillion BTU)

Residential Electricity Cost, March 2010 (+/- avg.) 7.57 cents/kWh (-3.63 cents/kWh)

Income Per Capita, 2008 (Rank) $32,076 (48th)

CO2 Emissions All Sectors, 2007 157.73 MMT CO2

Total ARRA Funding $2,619,183,118

Kentucky is unique in that it is an energy producing state, largely dependent on coal. Kentucky lies at a

crossroads in energy production and efficiency. Energy is a key employer and driver of Kentuckys

economy. However, low per capita income, the security of domestic energy production, and the ability

for homeowners to save over $300 per year with the adoption of the 2009 IECC, make energy

conservation an important issue. In order to preserve jobs, the economy, and the environment, it is

especially important for the state to have effective energy efficiency policies in place throughout the

Commonwealth.


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Figure 1 - State Population Map

Construction Overview

Kentuckys population has been rising steadily from 2000 to 2009 at about 6.7% which is just below the

national average of 9.1%.9 However as Figure 2 and 3 illustrate, the total residential housing units

permitted were on the rise from 2001 and spiked in 2004 but has been steadily declining ever since. The

units permitted dropped from 22,705 in 2004 to 6,878 in 2009 a decrease of 70%.


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Figure 2 Residential Permits by Year

Figure 3 Construction Decline 2008-09

Commercial permits have declined as well since 2008. The figure below shows the number of

architectural reviews for Commercial projects, which include all permits for commercial buildings.

0

5,000

10,000

15,000

20,000

25,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TotalResidentialHousingUnitsPermitted

Year

Kentucky Permits by Year

US Census Bureau data


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Figure 4 Commercial Permits by Year

While the decline in the construction industry is not beneficial to the Commonwealths economy, now is

a good time for the advancement of energy codes in Kentucky as the state and its local jurisdictions have

taken advantage of Recovery Act stimulus funding currently available for implementation of energy

efficiency initiatives. This is a favorable time to implement building energy codes, as slowed construction

will help ease all stakeholders into the new code, rather than trying to force it while construction is high.

Energy Portfolio

Kentuckys per capita energy consumption is higher than average compared to the rest of the U.S.

Energy consumption in Kentuckys industrial sector - especially impacted by its aluminum and petroleum

industries exceeds that of the nation and the rest of the South. 10 More than 40 percent of Kentucky

households use electricity as their primary energy source for home heating. Energy consumption in the

state is projected to increase by more than 40 percent between now and 2025, along with the

commensurate greenhouse gas emissions.11 The Commonwealth has one of the lowest rates of

electricity in the country. However, this winter the Kentucky Public Service Commission has received

hundreds of complaints from individuals whose bills rose dramatically from November to January.12

Kentucky is the third largest coal producing state in the nation (following Wyoming and West Virginia)

and is one of the few energy exporting states in the country, on average exporting over 1,000 trillion

BTUs of energy each year.

13 Coal-fired plants account for more than nine-tenths of the electricity

produced in the state and nearly 8,000 MWh of electricity each year, making Kentucky one of the most

coal-dependent states in the nation. Kentucky generates their remaining electricity using petroleum-

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Permits

Kentucky Commercial Permits by Year


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fired and hydroelectric power plants.14 Kentucky is one of the largest coal exporting states in the

country. Below is an overview of the Commonwealths energy portfolio.15

Petroleum: Kentucky has only a small amount of oil production at only 15.3 Trillion Btu

16. Kentucky

does have two oil refineries in Catlettsburg and Somerset. Since Kentucky is land locked, the larger

Catlettsburg refinery receives the oil via the Capline Pipeline. Kentuckys total petroleum consumptionis high relative to its population. 17

Natural Gas: Kentuckys second largest energy production comes from natural gas which equates to

only 0.5% of the nations total natural gas production.

18 More than two-fifths of Kentucky households

use natural gas as their primary fuel for home heating. 19

Coal: Kentucky accounts for 2,927.9 trillion Btu of the nations 23,706.4 overall coal production, or about

12% of the nations coal production. Domestic coal accounts for over 93% of the energy produced in

Kentucky. Kentucky has more coal mines than any other state -- nearly one third of all the coal mines in

the nation. Kentucky delivers approximately 75 percent of state coal production to more than two-

dozen states. Nearly 95 percent of the coal used in Kentucky is for electricity generation, and most of

the remainder is used in industrial and coke plants.

20

Renewables: Kentucky has three hydroelectric power plants that generate more the 100 megawatts of

power. The Tennessee and Cumberland Rivers in the Ohio River Basin provide hydroelectric power

potential.

21

Reducing local demand for energy via the implementation of energy codes would result in lower energy

bills for Kentucky residents, and allow more resources to be exported, increasing Kentuckys wealth.

Potential Savings from Energy Codes

Figure 5 shows the estimated annual energy savings per home per year from meeting the requirements

in the 2009 IECC. Included in the savings are heating, cooling, and lighting. Quantified in the table is

one climate zone in Kentucky, shown with an example city from the climate zone. Assuming 100

percent compliance with the 2009 IECC, home owners would have reduced their energy bills by 18

percent and collectively saved $2,311,008i

Figure 5: Energy Savings vs. Current Practice

per year in lower energy bills.

Savings Current Practice vs. 2009 IECC

Climate Zone/City Savings ($/year) Percent Savings

4A $336 18%Source:2009 IECC Residential Nationwide Analysis, U.S. Department of Energy

iThis value was calculated by multiplying the number of new single-family residential permits in 2009 by the

median energy savings per home if the home is built to the 2009 IECC.
http://bcap-ocean.org/resource/impacts-2009-iecc-residential-buildings-state-levelhttp://bcap-ocean.org/resource/impacts-2009-iecc-residential-buildings-state-levelhttp://bcap-ocean.org/resource/impacts-2009-iecc-residential-buildings-state-levelhttp://bcap-ocean.org/resource/impacts-2009-iecc-residential-buildings-state-level


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Figure 6 represents a percentage of potential energy savings that can be achieved by adopting the most

up to date ASHRAE 90.1-2007 building energy standard. Assuming 100 percent compliance with the

code, commercial energy costs would be reduced up to 6.5 percent.

Figure 6: Energy Savings CommercialConstruction Type City Energy Savings Cost Savings

Non Residential Lexington 5.6% 5.1%

Residential Lexington 10.0% 6.5%

Semi Heated Lexington 0.5% 0.3%

Source:Impacts of Standard 90.1-2007 for Commercial Buildings at State Level, U.S. Department of Energy

Non Residentialmeans any mid-rise commercial building; Residentialmeans high-rise residential buildings;

Semi Heatedmeans commercial warehouses. Energy cost savings are estimated using national average energy

costs of $0.0939 per kWh for electricity and $1.2201 per therm for natural gas.

BCAP estimates that if Kentucky began implementing the 2009 IECC and Standard 90.1-2007 statewide

in 2011 (making incremental steps toward 90 percent compliance in 2017), by 2030 it would save $277

million in annual energy costs for households and businesses, or $2.4 billion from 2001 to 2030.22

Cost Increment

The

monetary saving derived from energy codes increases a consumers purchasing power, and helps

expand the Commonwealths economy by keeping local dollars in Kentucky.

Cost is a major barrier to energy code adoption. To address this issue, BCAP undertook a study to

quantify the incremental construction cost of upgrading to the 2009 IECC in each state where such an

analysis was feasible. Assuming 100% code compliance, the average cost of building to the IECC 2009 is

about $774, and the expected energy savings is $336 per year. 23

This equates to a full return on the

investment in less than two and half years, as shown in the table below.

Figure 7: Weighted Average Incremental Cost

Weighted Average Incremental

CostMedian Energy Savings Simple Payback

$773.92 $336 2.30 Years

Source:Incremental Cost Analysis, Building Codes Assistance Project

Adoption

Federal Policy

Although energy code adoption occurs on the state and local levels, the federal governmentthrough

Congress and the U.S. Department of Energy (DOE)has played a significant role in advancing energy
http://www.energycodes.gov/publications/techassist/90-1-2007_Commercial_Nationwide_Analysis.pdfhttp://www.energycodes.gov/publications/techassist/90-1-2007_Commercial_Nationwide_Analysis.pdfhttp://www.energycodes.gov/publications/techassist/90-1-2007_Commercial_Nationwide_Analysis.pdfhttp://bcap-ocean.org/incremental-cost-analysishttp://bcap-ocean.org/incremental-cost-analysishttp://bcap-ocean.org/incremental-cost-analysishttp://bcap-ocean.org/incremental-cost-analysishttp://www.energycodes.gov/publications/techassist/90-1-2007_Commercial_Nationwide_Analysis.pdf


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Whats required by the IECC?

Depending on your location (climate zone)

there are requirements for insulating ceilings,

walls, and sometimes, floors, foundations,

basement walls, and slab edge

Less insulation is allowed for mass walls, and

more is required for steel framing

Also dependant on climate zone, there arerequirements for windows, skylights, and

doors

The building shell, also known as the building

envelope, must be caulked and sealed to limit

air movement

Duct insulation

Pipe insulation

Duct sealing to reduce air leakage

Heating, ventilation, air conditioning (HVAC)

and water heating equipment efficiencies and

control requirements for commercial

buildings

Some residential lighting requirements

All commercial lighting

Heated swimming pool covers and controls

The energy code applies to all new residential

and commercial buildings, as well as

additions/alterations/renovations to existing

buildings

Compliance paths include prescriptive, total

building envelope UA (tradeoff method), and

simulated performance

code development, determining the relative effectiveness of national model energy codes, and

supporting state- and local-level adoption and implementation.

EPAct

The Energy Policy Act (EPAct) of 1992 required DOE to determine whether the most current modelenergy codes would improve energy efficiency for residential and commercial buildings. It also

mandated that the DOE make a new determination within twelve months for every subsequent revision

of these codes. Each state would then have two years

to certify that it had revised its own energy code to

meet or exceed the requirements of the latest

iteration of the national models. A state could decline

to adopt a residential energy code by submitting a

statement to the Secretary of the DOE detailing its

reasons for doing so. The Energy Policy Act of 2005

specified that the most current model energy codeswere the 2004 supplement to the 2003 IECC and

ASHRAE Standard 90.1-2004.24

At the end of 2008, the DOE published its

determination for ASHRAE Standard 90.1-2004 for

commercial buildings, ruling that energy savings above

the previous Standard 90.1-1999 would be 13.9

percent for national source energy and 11.9 percent

for building energy consumption. DOE is currently

reviewing Standard 90.1-2007, the most recentnational model energy code for commercial buildings.

For residential and small commercial, the last DOE

determination was for the 2000 IECC. At present, DOE

is reviewing the 2003, 2006, and 2009 versions of the

code.

The Commonwealth of Kentucky is currently in

compliance with EPAct for both commercial and

residential codes.25

The Recovery Act

In February 2009, the American Recovery and Reinvestment Act (Recovery Act) federal legislation

appropriating funds for a variety of state economic initiatives allocated $3.1 billion for the U.S.

Department of Energy (DOE) State Energy Program (SEP) to assist states with building energy efficiency

efforts. As a condition of accepting $69 million in SEP funding, Gov. Steven Beshear certified to DOE that

Kentucky would implement energy standards of equal or greater stringency than the latest national


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model codes and achieve 90 percent compliance in new and renovated residential and commercial

building space by 2017.26

Kentucky must continue and broaden its efforts to successfully implement the building energy code

plans submitted to DOE. It is in the Commonwealths best economic interest to adopt the 2009 IECC andStandard 90.1-2007 statewide and begin the construction of more efficient buildings.

The Division of Efficiency and Conservation (DEC) under the Department for

Energy Development and Independence (DEDI) is responsible for managing the $69 million ARRA funds.

State Policy

In the United States, building energy codes are adopted on the state and local levels. This is due, in part,

to the diverse range of cultures and climates found across the fifty states, as well as a host of historical

political influences that shaped federal-state and state-local relations. The process differs from state to

state, but in most cases codes are adopted through a legislative process, a regulatory process, or a

combination of both, although a handful of states are strongly home rule and permit local jurisdictions

to adopt energy codes. Every state is unique in how it conducts business and creates policy, and eachstate requires its own particular strategy for achieving the best possible code for its local governments,

citizens, and businesses.

Political Environment and Energy Code Adoption

Under the Public Protection Cabinet, the Kentucky Department of Housing, Buildings and Construction

(HBC) is responsible for promulgating building codes for the state. The HBC also administers licensing of

building trades professionals. The department has four divisions: (1) Building Code Enforcement; (2)

Heating, Ventilation and Air Conditioning (HVAC); (3) Plumbing; (4) Fire Prevention / Office of the State

Fire Marshal.

The 2007 Kentucky Building Code (KBC) is a uniform mandatory statewide code for all commercial

buildingsii

The Kentucky Residential Code (KRC) is a mandatory statewide code based on the 2006 IRC with some

modifications to the energy code. It went in to effect August 1, 2007. The KRC is a min/max code, in

that it establishes minimum and maximum building code requirements for detached single family

dwellings, two-family dwellings, and townhouses, and no local government shall adopt or enforce any

other building code on these units.

, based off of the 2006 IBC with state amendments, none of which affect the energy efficiency

chapter. It went into effect July 1, 2007. The energy code is set at the state level, and compliance is

mandatory statewide.

iiExceptions include farm dwellings, farm buildings and manufactured houses.


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Figure 8: Statewide Codes

CodeStrengthening/Weakening

Amendments

Residential 2007 Kentucky Residential Code

Mandatory inspection of all

HVAC Systems.

Commercial 2007 Kentucky Building Code noneState Buildings 2007 Kentucky Building Code none

Code Adoption Process

The HBCs Division of Building Codes Enforcement (DBCE) was established following the initial adoption

of the Kentucky Building Code on February 15, 1980. The DBCE is responsible for enforcing code changes

and amendments. While the state does not have a set schedule for updating building codes, it generally

(but not always) follows a three-year cycle. Typically the energy code is considered at that time. Changes

to the KBC may be submitted for consideration and voted upon by the Board of Housing, Buildings and

Construction (HBC).iii

1. The code is brought before the affected committees and boards for comments and

recommendations;

Below is a brief general description of the process for changing codes:

2. The code is brought before the HBC for review and approval, amendment or rejection;

3. If approved, a regulatory amendment is filed with the Legislative Research Commission (LRC)

for public comment and further review.

4. Once approved by the LRC, changes and amendments are adopted and entered as part of the

state requirements and they become state law by the state statute.

Currently, the HBC has approved the 2009 IECC for commercial codes and is awaiting final approval from

the LRC.

The 2009 IECC for residential dwellings is being reviewed by a committee (convened by the HBC) that

includes builders, architects, energy professionals and HBC staff to research the additional cost and

expected payback period of the updates. HBC staff participating in the committee hope to gain the

support of this committee and submit the IECC 2009 (perhaps with Kentucky amendments) to the full

HBC board in the next few months.

Gap #1: Kentucky does not have an automatic energy code review and update process on a

three-year cycle.

Recommendation:The state should adopt an automatic review process for future updates of the

model energy code to lock in future energy savings and remove speculation after the release of each

new model energy code.

iiiThe board consists of 21 members appointed by the Governor.


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Recent Energy Codes-related Legislation

As of January 2011 and as a result of Senate Bill 10 (SB 10) , the Commonwealth of Kentucky now

requires permits and inspections for all new HVAC systems statewide (for both commercial and

residential). Any contractor or homeowner installing new heating or cooling equipment/mechanical

system must apply for a HVAC permit and the unit must be inspected by a state certified professional toensure code compliance.iv

On January 26, 2010, the Kentucky General Assembly voted unanimously to adopt resolution

The Division of Heating, Ventilation and Air Conditioning won an Innovation

in Regulation Award from the National Association of State Contractors Licensing Agencies for their

excellence in establishing the statewide permitting and inspection program for HVAC installations.

House

Resolution (HR 24). This resolution endorsed the creation of a Green Schools Caucus in the Kentucky

General Assembly to advocate and encourage broader application of the design and construction

practices for green schools. School districts are also encouraged to seek LEED certification or an

equivalent standard for school buildings. This formalized a process for Kentucky legislators to become

educated on energy efficiency or sustainable buildings. According to the Executive Director for theKentucky U.S. Green Building Council (USBGC), Legislators are genuinely interested in learning about

green building practices.

On April 13, 2010, Governor Beshear signed SB 132into law, in order to support and encourage the use

of efficient design concepts in new and renovated school buildings. Schools are required to follow the

KBC, and the state does not have separate, energy codes or standards for schools. However, the law

requires the Department of Education to develop and adopt guidelines for efficient school design; and

to establish an efficient school design trust fund. As the law only encourages schools to consider school

design, construction, operation, and maintenance in the initial design and decision-making process, it is

not a state mandate that schools must comply with. While the Department of Education does provide achecklist for energy efficiency and encourages schools to consider energy efficiency requirements there

is not a penalty for non-compliance.

GAP #2: The School Design Trust Fund is an unfunded initiative, and many schools feel they cant

afford the [perceived or real] additional upfront cost of going above the state energy code.

Recommendation A: The state should consider policies that will offset the higher upfront cost of

above-code energy requirements such as Energy Efficient Resource Standard (EERS)v or Public

Benefit Fund (PBF)vi

ivExceptions include HVAC systems installed in manufactured housing, window unit air conditioners, and space

heaters.

.

vAn Energy Efficiency Resource Standard is a regulatory mechanism that encourages utilities to improve the

efficiency of their generation, transmission, and use of electricity and natural gas by establishing an explicit,

numerical target for incorporating energy efficiency into a utility companys power source mix.
http://www.lrc.ky.gov/record/10RS/HR24.htmhttp://www.lrc.ky.gov/record/10RS/HR24.htmhttp://www.lrc.ky.gov/record/10RS/HR24.htmhttp://www.lrc.ky.gov/record/10RS/HR24.htmhttp://www.lrc.ky.gov/record/10RS/HR24.htmhttp://www.lrc.ky.gov/record/10RS/HR24.htm


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Recommendation B: Kentucky should establish a long-term, self-funded program to help schools

engage an ESCO for major remodeling projects (see recommendation B, Gap #4 below).

GAP #3: There is very little information available to schools about the school efficiency program

on the Department of Educations website.

Recommendation: The Department of Education should provide simplified information on its

website, including a concise description of the financial, health, and educational achievement

benefits that result from greater energy efficiency in schools.

In April of 2009, HB 2 was signed into law, requiring all new public facilities and renovations using 50

percent or more of state funding to achieve high performance building standards - which vary

depending on the size of the project. (See Energy Codes for State Funded Facilities section below). HB 2

also required each board of education to enroll in the Kentucky Energy Efficiency Program for Schools

(KEEPS), which is administered by the Kentucky Pollution Prevention Center (KPPC) at the University of

Louisville J.B. Speed School of Engineering. The KEEPS program employs regional coordinators that assist

Kentucky school districts in putting together and assisting school cross-functional teams (e.g.,

consisting of school administrators, facility managers, teachers, students, parents, food staff, curriculum

coordinators) as they develop an energy management program to reduce energy consumption. Each

board must report annually on their energy usage, cost and savings measures. Of the 174 school districts

in Kentucky, 98 districts have fully functioning energy teams. The KEEPS program was established using

ARRA funds. There is no funding available for making energy improvements as part of the KEEPS

program, and it relies heavily on behavioral changes (conservation) rather than long-lasting energy

improvements (efficiency). Conservation/behavioral changes are important to instill in teachers and

students and can make significant impacts on energy bills. However, behavioral changes are often

difficult to maintain over time and with staff turnover.

To further support the KEEPS program, the School Energy Managers Project (SEMP) was created, and

local school district energy managers were hired to implement the recommendations established by

KEEPS. SEMP energy managers are the boots on the ground to accomplish KEEPS goals.

GAP #4: When ARRA funding is gone, the momentum thats been created with the KEEPS program

may not persevere across generations of teachers and students without continued support.

Now that KEEPS teams are established in school districts, it is an opportunity for the state to step in

and assist these teams that have taken ownership and interest in lowering their school energy bills

build upon the momentum thats begun. It should:

viA Public Benefit Fund is a policy tool used to provide a cohesive strategy and long-term funding for state and city-

run energy programs. It is most commonly supported by a Systems Benefit Charge (SBC), a small fixed fee added to

customers electricity bills each month.


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RecommendationA: Educate and encourage KEEPS teams to advocate for state policies that would

enhance their work and allow them to go to the next level of energy efficiency and energy bill

savings. For example, KEEPS teams could advocate for state-level policies such as an Energy

Efficiency Resource Standard (EERS) or a Public Benefit Fund (PBF). These policies would provide an

opportunity to involve utility companies as potential funders of the long-lasting efficiency

improvements KEEPS teams may identify and maximizing the energy bill savings they are working to

achieve. Such policies could also be used to support energy code training and other support, such as

rebates for ENERGY STAR qualified homes.

Recommendation B: Provide technical assistance to schools as they move beyond behavioral

changes and consider energy efficiency improvements that would provide long-lasting energy

savings to the school districts. For example, when ARRA funding ends, HBC or the Department for

Local Government (in the Office of the Governor) could provide technical services to the KEEPS

program to encourage and facilitate school districts use of ESCOs. Services could include offering

pre-approved contractors, ready-made contracts (pre-negotiated with contractors as a condition of

being a pre-approved contractor); advise and assist in the review of audits; assist in paperwork; and

more. The additional staff cost for this program can be recovered in the total cost to the state

agency administering the program a successful model for this is the state of Kansas. vii

Such initiatives help to train and familiarize the construction industry in more energy efficient building

techniques, which ultimately leads to easier and faster acceptance of more stringent energy codes.

Other Building Codes

There are numerous building codes in place in Kentucky; the main ones related to energy codes include:

2007 Kentucky Building Code (Based on the 2006 IBC)

2006 International Mechanical Code, adopted by reference in the 2007 Kentucky Building Code,

used for all mechanical installations other than one and two family dwelling which is regulated

by the 2007 Kentucky Residential Code.

2006 NRPA National Fuel Gas Code

2004 ICC/ANSI A117.1 Accessible and Usable Buildings and Facilities

2007 Kentucky Standards of Safety

2007 Kentucky Residential Code (Based on the 2006 IRC)

2007 Kentucky Building Code (Day Care Centers see Section 420 for special requirements)

2007 Kentucky Plumbing Code

2008 NFPA 70 National Electric Code

viiFor example, the state of Kansas has improved the energy efficiency of more than 70 percent of its public

buildings and is saving more than $13 million annually on energy bills. See the Compendium of Best Practices

report, page 72 available at - http://www.reeep.org/16672/compendium-of-best-practices.htm


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2006 International Fire Code, used for new construction; only when specifically referenced by

the body of KBC)

2000 NFPA101-Life Safety Code (Health Care Facilities)

2006 International Fire Code for Portable Extinguishers (Section 906)

2002 NFPA 13- Sprinkler Systems

2002 NFPA 13D-Sprinkler Systems One/Two Family Dwelling

2002 NFPA 13R-Sprinkler systems in Residential Occupancies

2003 NFPA 14-Standpipe, Hose Systems

2002 NFPA 72-Fire Alarm

State Boiler Codes & Regulations (KRS 236 and 815 Chapter 15 as currently filed with LRC)

1989 or later edition ASME Boiler, Pressure Vessel and Pressure piping Codes

1989 or later edition of the National Board Inspection Code

Energy Codes for State-funded Facilities

As previously mentioned,HB 2 27

By having more stringent energy standards for state-funded buildings, the Commonwealth is

demonstrating fiscal responsibility with tax payer dollars; familiarizing and training the construction

industry and code enforcement officials; and increasing demand for greener products from product

suppliers, manufacturers and service providers. More efficient public buildings also help the state hedge

against uncertain future energy costs and availability and reduce its susceptibility to fuel price volatility.

requires all projects for which 50% or more of the total capital cost is

paid by the state to meet high performance building standards. Requirements vary depending on thecost of the project, but generally require that higher budget projects meet higher LEED certification

requirements. For example, projects over $25 million must achieve LEED Silver certification or higher;

projects between $5 and $25 million must achieve LEED Certified and earn a minimum of seven points

under the Energy and Atmosphere Credit 1, Optimize Energy Performance standards.

Projects are administered by Capital Project Managers at the Finance and Administration Cabinet.

Capital Project Managers do not conduct visual inspections, but rather they rely on their review of

submitted plans. Currently, the project managers do not require LEED certification because the state

wanted to first assure that builders were up to speed enough to build to the standards. The state has

considered obtaining LEED professional credentials for HBC state building inspectors.

GAP #5: Neither a visual inspection for energy features nor LEED certification is being enforced by

Capital Project Managers for state buildings.

Recommendation: The Finance and Administration Cabinet should further consider having stateinspectors become LEED accredited professionals so that they may assure that buildings meet the

state high performance building standards.
http://www.lrc.ky.gov/record/08RS/HB2/bill.dochttp://www.lrc.ky.gov/record/08RS/HB2/bill.dochttp://www.lrc.ky.gov/record/08RS/HB2/bill.doc


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Potential Impact on Pollution Reduction

Electricity use is a leading generator of air

pollution. The per capita consumption ofresidential electricity in Kentucky is among the

highest in the nation with more than two-fifths

of Kentucky households relying on electricity

for their primary energy source for home

heating. Rising power demand increases

emissions of sulfur dioxide, nitrous oxides and

carbon dioxide. Energy codes are a proven,

cost-effective policy for addressing these and

other environmental impacts.

If in 2011 Kentucky begins implementing the

2009 IECC and Standard 90.1-2007 statewide

(making incremental steps toward 90 percent

compliance in 2017), by 2030 CO2 emissions

would be reduced by 1.3 metric tons.

Statewide Climate Change & Energy Efficiency Initiatives

In 2008, the Governor released a seven-part energy

strategy called Intelligent Energy Choices for

Kentuckys Future. If the strategy is fully enacted,

the plan will achieve energy independence from

imported oil, reduce per capita carbon emissions by

50 percent, optimize use of renewable energy, and

more. The first of the seven strategies is to improve

the energy efficiency of Kentuckys homes,

buildings, industries, and transportation fleet. The

goal of this strategy is that Energy efficiency will

offset at least 18 percent of Kentuckys projected

2025 energy demand.

Following the release of the energy strategy, in June2009 the Governor issued via Executive Order 2009-

0538 which (among other directives) resulted in a

major departmental realignment under the

Kentucky Energy and Environment Cabinet (EEC). It

established the Department for Energy

Development and Independence (DEDI) and six

divisions to specifically address the seven energy strategies.8

The EEC then formed the Kentucky Climate Action Plan Council (KCAPC) in December 2009.

28 The KCAPC

has since been developing a Climate Action Plan to make policy recommendations to the Governor toaddress climate change while becoming more energy efficient, more energy independent, and spurring

economic growth.29 The climate action plan is expected to be complete in early 2011.30

8There are three departments within the EEC: The Department for Environmental Protection, Department for

Natural Resources, and Department for Energy Development and Independence (DEDI). DEDI now includes these

divisions: (1) Division of Efficiency and Conservation; (2) Division of Renewable Energy; (3) Division of Biofuels; (4)

Division of Energy Generation Transmission and Distribution; (5) Division of Carbon Management; (6) Division of

Fossil Energy Development.

It will include

recommendations on policies the state should adopt, such as model energy codes that allow local

jurisdictions to go above the code, continuing programs that allow the government to lead by example,

and increasing implementation and enforcement of existing codes. According to Talina Mathews,

Assistant Director of Carbon Management Division at DEDI, the draft Climate Action Plan does not

include recommendations such as an Energy Efficiency Portfolio Standard or Public Benefit Fund, both of

which could provide important funding mechanisms for increased energy code work that needs to occur

in the state.


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Why Green and Above-Code Programs Matter

Green and advanced codes and standards help to

transform the marketplace by bringing high

performing buildings into the mainstream. They

also raise awareness of energy- and resource-

efficient design for the public, as well as design

and building professionals and code officials.

They raise the bar for building energy

performance, which familiarizes the constructionindustry and accelerates the adoption of future

model codes.

Gap #6: The draft Climate Action Plan does not include recommendations such as an Energy

Efficiency Portfolio Standard or Public Benefit Fund, both of which could provide important funding

mechanisms that could fund increased energy code initiatives that need to occur in the state.

Recommendation: The state should consider adopting policies that will help fund energy code and

related energy efficiency policies that will be included in the Climate Action Plan.

While the above programs are the main initiatives related to energy codes in the state of Kentucky,

there are a other projects that support energy efficiency in the Commonwealth (e.g., the Green and

Healthy Schools Program is a voluntary program whereby students work with teachers to collect data

and design a program for their schools; and the Green Bank, a revolving loan fund to be used for

retrofits to state buildings.)

Overview of Green and Above-Code Programs

The state of Kentucky has taken great strides in marketing and supporting third-party certification

programs such as LEED (for state buildings), ENERGY STAR (for new homes), and Home Performance

with ENERGY STAR (for existing homes). DEDI works with universities, home builder associations, and

others to promote such programs. Of special note, and with funding and support from DEDI, the

Kentucky Housing Corporation (KHC) has designed a well-rounded program that simplifies and incents

single family home owners to utilize the Home Performance program for existing homes. This program

provides training to contractors; streamlines the process for customers by making information about

utility and other incentives available to customers at the time of sale; provides ready-made marketing

materials for contractors, and more.

In addition, for the past eight years, the Department for Energy Development and Independence (DEDI)

has sponsored an annual High Performance Schools Workshop for school decision-makers, architectsand engineers planning a new construction or major renovation project. The workshop includes high

performance/sustainability concepts and how these

building designs benefit the learning environment

and building operations.

LEED

The U.S. Green Building Councils Leadership in

Energy and Environmental Design (LEED) Green

Building Rating System is a nationally accepted

benchmark for the design, construction, andoperation of high performance green buildings. Of

the 5,156 LEED certified buildings in the country;

Kentucky has 38 (less than 1 percent of the national total). 31 For LEED registeredbuildings, Kentucky

accounts for 179 of the more than 18,000 projects registered nationally (less than 1 percent). 32

Compared to its neighbors in the southeast, Kentucky has an average number of LEED-certified

structures, but less than Florida, Georgia, North Carolina, Texas and Virginia. However, according to a


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The HERS Index Explained

The HERS Index is a scoring system thatprovides a scale for measuring the energy

efficiency of a new home compared to a

reference home that was built to the 2004

IECC, which is assigned the score of 100

points. The lower a homes HERS Index, the

more energy efficient it is. Every one point

decrease in the HERS Index corresponds to a

one percent reduction in energy consumption

compared to the HERS reference home. For

example, a home that scores an 85 is 15

percent more efficient than the HERS

reference home, and a home that scores zero

is a net zero building (see www.resnet.us for

more details). Both ENERGY STAR for Homes

and Building America intend to increase the

stringency of their requirements in the coming

months.

Senior Advisor to the Secretary of the Finance and Administration Cabinet, over the past two years, the

interest and participation in LEED has increased tremendously, and is expected to continue to rise.33

ENERGY STAR for Homes

ENERGY STAR for Homes is a national above-code building program started by the EPA. To qualify for

the ENERGY STAR for Homes label, homes must receive a score of 85 or less on the HERS index. ENERGY

STAR qualified homes are typically 2030% more efficient than a standard new home.

Kentucky has 7,162 ENERGY STAR homes. This accounts for just over 0.6% of the nations number of

Energy Star homes. In 2010, 1,809 ENERGY STAR qualified homes were built or 28 percent of all new

homes an increase in comparison to the 1,639 and 20 percent market penetration in 2009. These

homes were constructed by 171 different Energy Star partner builders in the state.34

The prevalence of ENERGY STAR means that many builders are already building above-code, indicating

that the cost and learning curve for such builders will be easier as they transition to the 2009 IECC.

There are about 46

entities that conduct energy ratings in the state.

The largest utility in the state - LG&E and KU offers rebates to builders in their service territory

through their Demand Side Management (DSM) program to offset the cost of the energy rating for

ENERGY STAR qualifying homes. Since the program began in 2009, theyve provided more than 1,300

rebates to builders, significantly increasing the number of ENERGY STAR homes in the state.35

Building America

Since 1994, the DOEs Building America program has

been raising the bar for energy efficiency and quality in

new and existing homes. Working with nationallaboratories and the residential building industry, its

goal is to improve the quality and performance of

todays homes while continually working towards net-

zero energy homes. To qualify, homes must receive a

score of 70 or less on the HERS index, though the

programs innovative house-as-a-system approach can

reduce a homes average energy consumption by as

much as 40 percent with little or no impact on the cost

of new construction. Building America approaches have

been used in more than 42,000 homes across thecountry to date. These homes typically sell within

weeks while other new homes sit on the market for

months.

Through its Builders Challenge program, new homes

that meet stringent qualifications can earn an
http://www.resnet.us/http://www.resnet.us/http://www.resnet.us/http://www.resnet.us/


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EnergySmart Home Scale label. Builders Challenge is similar to ENERGY STAR for Homes in that both

programs assist and reward builders who build homes more efficiently than standard practice. However,

the energy threshold requirements for the Builders Challenge program are different than those of

ENERGY STAR (see sidebar).

According to the Building America website, no homes in Kentucky have been built to Building Americaspecifications.36

GAP #7: Third party, above-code energy efficiency programs are underutilized in Kentucky.

Recommendation A: The state should continue and expand its successful efforts to support and

encourage the use of voluntary third-party programs that increase the energy efficiency of buildings

beyond what the energy code mandates.

Local Policy

Local energy code adoption varies greatly from state-to-state. In strong home rule states, local

jurisdictions have full authority to adopt energy codes that best fit the needs of their community, while

others must meet a statewide minimum first. Other states - like Kentucky, mandate a minimum-

maximum energy code that prohibits local jurisdictions from diverging from the state code whatsoever.

Most states fall somewhere in between, mandating a minimum code, but allowing some flexibility to go

beyond it in progressive jurisdictions.

Local Adoption Challenges

Energy codes in Kentucky follow Dillons Rule, meaning that the code is established at the state level and

amendments at the local level are not allowed (called a min/max code in Kentucky). This codeprevents local governments from adopting energy codes more stringent or weaker than the state code.

While preventing localities from going above code, does make for a strong uniform mandatory

statewide code. One consequence of this type of state primacy is that it prevents local governments

from adopting mandatory local green initiatives, or adopting the 2012 IECC, ASHRAE Standard 90.1-

2010, the International Green Construction Code (IGCC), or ASHRAE Standard 189.

Gap #8: Cities and counties in Kentucky are not able to exceed state energy code requirements

and adopt advanced codes.

Recommendation: Offer local jurisdictions the option of adopting a Kentucky stretch code 9

9For example, in the state of Massachusetts, stretch code provisions for new residential construction are

specified as: New residential buildings 3 stories or less will be required to meet an energy performance standard

using the Home Energy Rating System2

(HERS). The HERS index scores a home on a scale where 0 is a zero-net-

energy home, and 100 is a code compliant new home (currently based on the IECC 2006 code). The MA stretch

which is an alternative to the base state-mandated code. Stretch codes provide an alternative to


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those municipalities that seek to ensure that construction within their boundaries is designed and

built above the state standards. Consider requiring that the stretch code utilizes third-party

certification programs such as Energy Star, LEED, Core Performance, or Building America

(EnergySmart).

Energy Codes for Municipal-funded Facilities

By requiring stricter standards for public buildings, jurisdictions demonstrate their commitment to

energy-efficient construction, create a more conducive environment for stricter energy code adoption

for private construction, and give themselves leverage in negotiating with stakeholder groups that are

hesitant to upgrade the baseline energy code. They also save taxpayer dollars with lower energy bills,

further reduce their environmental impact, and improve the air quality and comfort of public buildings.

While some local governments are interested in promoting green or above-code requirements,

state law does not allow municipal governments to set more progressive energy code policies for their

communities. However, local governments can choose to set higher standards for their own buildings.

As mentioned above, a stretch code offers an alternative to those municipalities that seek to ensure that

construction within their boundaries is designed and built above the state standards.

Local Climate Change Initiatives

The Mountain Association for Community Economic Development (MACED) is a non-profit organization

that provides financial investments and technical assistance to local businesses to help distressed

communities; and to craft solutions that improve communities. MACED is a partner in the Appalachian

Carbon Partnership (ACP) which was formed to help promote sustainable forest management in Central

Appalachia by connecting family forest owners to the carbon offsets market.

In addition, MACED is currently working on two projects that indirectly support energy codes: (1)

MACED is working with four electric cooperatives to launch a program that will allow homeowners to

code requires a HERS index of 65 or less for new homes of 3,000 square feet or above, and 70 or less for new

homes below 3,000 square feet (this includes multi-family units in buildings of 3 stories or less). A HERS index of 65

means that the home is estimated to use 65percent as much energy as the same home built to the 2006 energy

code, or a 35percent annual energy savings. For residential home renovations: Home additions and renovations

have two options to meet the stretch code: (i) The same performance approach as new construction but

requiring a HERS of 80 or less for significant changes to homes over 2,000 square feet, or 85 or less for homes

below 2,000 square feet. (ii) A prescriptive approach, where specific efficiency measures are required rather

than a HERS index number. This utilizes the Energy Star for Homes program prescriptive requirements, and

insulation at least equal to IECC 2009. The stretch code also applies a performance-based code to commercial

buildings for more information, see

http://www.mass.gov/?pageID=eopsmodulechunk&L=3&L0=Home&L1=Public+Safety+Agencies&L2=Massachusett

s+Department+of+Public+Safety&sid=Eeops&b=terminalcontent&f=dps_bbrs_build_code_changes_public_hearing

&csid=Eeops


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finance energy efficiency improvements on their monthly energy bill - this program will increase

demand for energy auditing services and local energy efficiency improvements contractors/providers. 10

Both programs are educating and familiarizing the construction industry in regards to how to build

energy efficiently, and educating consumers about the benefits.

(2) MACEDs Energy Efficiency Enterprises (E3) project promotes energy efficiency to small businesses

and NGOs located in Appalachian, Kentucky by offering energy audit equipment free of charge, technical

assistance to building trade contractors, financing for energy improvements, and energy consulting by a

certified energy manager.

Overview of Local Green and Above-Code Building Programs

Some cities in Kentucky are acknowledging that their use of energy impacts the climate and are taking

steps to reduce city-wide energy usage. Such cities include:

Lexington has established a GHG inventory for the year 2007, and has a Climate Action Team which is

developing recommendations for the city.37

Louisville - its Partnership for a Green Cityis a collaborative effort by three of Louisvilles largest public

entities: Louisville Metro Government, the University of Louisville, and the Jefferson County Public

Schools. It crafted a city Climate Action Report that includes recommendations such as fast-tracking

permitting processes on buildings; incentives building constructed beyond state energy code; stronger

energy standards for state buildings; and other code-related recommendations.

Frankfort - its Mayors Task Force developed recommendations energy efficiency for the city in order to

address climate change.

Current Best Practices

Kentucky has a number of best practices for adoption that other states can replicate:

The Board of Housing, Construction and Buildings has adopted the 2009 IECC for commercial

buildings (pending final approval by the LRC).

The HBC has actively involved the building construction industry in the adoption process by

having convened a committee that includes builders, architects, energy professionals and HBC.

At least three cities in Kentucky are demonstrating leadership by formally addressing climate

change as a priority that their cities can work toward solving locally.

The Governor is demonstrating leadership by having released a seven-part energy strategy toachieve energy independence, reduce per capita carbon emissions, optimize use of renewable

10The program was designed with lessons learned from the Lawrence Berkeley National Laboratorys report

Driving Demand, and by researching other on-bill financing programs.


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energy, and more. The first of the seven strategies is to improve the energy efficiency of

Kentuckys homes, buildings, industries, and transportation fleet.

The ensuing Kentucky Climate Action Plan Council has made great strides on a Climate Action

Plan, and has educated and garnered inclusiveness by including various stakeholders in the

process.

By having more stringent energy standards for state-funded buildings, the Commonwealth is

demonstrating fiscal responsibility as tax dollars will be better-spent (through lower energy

bills).

The state has engaged and raised awareness of the importance of energy efficiency in school

districts via the KEEPS program, whereby every school district in Kentucky has developed an

energy management program to reduce energy consumption.

Adoption Summary

The Commonwealth of Kentucky, while currently undergoing its legislatively mandated building code

review cycle, has made significant steps toward adopting updated energy codes, which demonstrates

leadership towards energy independence.

The Commonwealth of Kentucky stands to gain significant energy savings through the adoption and

implementation of the current national model code. As an energy-exporting state, reducing demand for

energy across the Commonwealth will allow it to export more locally produced energy saving

individual businesses and families money on their energy bills, while increasing the states income.

Kentuckys current code practice is as a min/max state, which creates a strong uniform statewide

mandatory code.

Implementation

While energy code adoption is the necessary first step in the energy codes process, it does not

guarantee compliance. To achieve the desired energy and financial savings available through energy

codes, states and cities must carry out energy code implementation, a term used to describe all of the

activities needed to prepare state energy offices, local building departments, the building industry, and

other stakeholders for compliance with the energy code. It includes outreach to stakeholder groups, on-

site, classroom, and web-based training, establishing and utilizing enforcement infrastructure, tools, and

systems, and other educational and organizational efforts.

Overview of State and Local Implementation Policies

Under the Kentucky Public Protection Cabinet, the HBC is responsible for establishing and enforcing the

statewide standards for building construction, known as the Kentucky Building Code (KBC). The agency

also licenses and certifies building inspectors, plumbers, electricians, boiler contractors, and other


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building trade professionals. It strives to provide a more effective building inspection process. The HBCs

Division of Building Codes Enforcement (DBCE) is responsible for enforcing codes.

Outreach

Energy codes have come a long way, but many people are still unaware of their benefits, including mostconsumers and some policymakers. Many code officials and building and design professionals are also

not educated in building science and dont fully understand the benefits and requirements of the energy

code. Outreach involves all of the activities states and local jurisdictions can undertake to raise

awareness of the need for energy codes, promote their adoption and implementation, and identify

opportunities for training, technical assistance, and other support. Given the diversity of the energy

codes community across the country, execution of strategic outreach campaigns can improve

understanding of code changes, create buy-in, and can lead to greater levels of compliance. DEDI is

implementing a number of outreach strategies that impact energy codes as described below.

With funding from DEDI for public education, the Kentucky Cooperative Extension Service travels to

events such as state fairs and home and garden shows to promote ENERGY STAR and Home

Performance with ENERGY STAR programs. The state extension service has also conducted training for

builders. Its offices across the state could disseminate energy efficiency information to the populous.

In addition, DEDI regularly awards builders who achieve ENERGY STAR qualification for new homes. In

late 2010, First Lady Jane Beshear attended events to recognize ENERGY STAR homes, raising public

awareness of the importance of energy efficiency and encouraging others to take action.

According to Joan Pauley, the Executive Director for the Kentucky chapter of the USGBC Education is a

key need in the state only then [with education] will a greater understanding come about and well

be able to change faster.

GAP #9: There is a lack of demand from consumers for energy codes, due primarily to the low

electric rates in the state. The state lacks a widespread movement that would help raise public

awareness of the benefits of energy efficiency new buildings, and encourage new home buyers to

demand; builders to build; and code officials to promote high-quality, energy-efficient homes and

buildings.

Recommendation: In order to: help increase demand for energy efficient homes; recognize builders;

and raise public awareness, the HBC should:

A: Provide ready-made information on the importance of energy efficiency, energy codes andvoluntary, third-party programs to building departments, so that they can help raise awareness of

such programs with their local construction industry.

B: Engage contractors, architects and other related professionals in the promotion of energy

efficiency, by providing them with ready-made marketing materials that describe the compelling

and specific benefits of energy efficiency.


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C: Raise public demand for energy efficiency by offering courses on energy efficiency via

partnerships with organizations/groups that reach rural areas of the state. The extension service

may be a good candidate for partnership due to its history and expertise in offering courses to the

public, including energy efficiency courses.

D: Seek publicity (e.g., give awards, distribute press releases) for builders who meet the Builders

Challenge qualifications, or other high performance building programs, in order to raise public

awareness and drive demand for energy efficiency and raise the bar for advanced homes. This helps

give builders who are going the extra mile a competitive edge on builders who are not paying

attention to the detail of energy efficiency.

E: Launch a statewide campaign to raise awareness of the benefits of energy efficiency which could

include public relations efforts, radio and TV interviews, news releases, and articles.

States Role in Promoting Codes

Kentucky has taken a leadership role in promoting energy efficiency as described throughout this report.Its main efforts regarding energy codes specifically include:

HBC is working with the University of Kentucky to develop training modules for commercial

energy code implementation, and in May of 2011 will conduct three days of workshops in

Paducah, Bowling Green, Lexington, and Louisville. One day will provide information for building

inspection professionals; two days will provide information for design professionals. The HBC is

also working with BCAP to develop similar training modules for implementation of the

residential energy code, and it is anticipated that workshops will be delivered via technical

colleges in the state (to be determined).

The HBCs Division of Building Codes Enforcement (DBCE) provides an Energy Code Workbookdesigned to help builders demonstrate compliance with the 2006 IECC. The workbook describes

the three possible methods for compliance on the residential side, and one prescriptive path for

commercial. This workbook has been adopted by several jurisdictions in the Commonwealth,

creating a best practice that many other states are lacking. However, it is unclear how much

and whether jurisdictions are utilizing the workbook.

GAP #10: The extent to which local governments promote codes varies widely between

jurisdictions.BCAP has found that areas that have a local champion (whether within a building

department, or a Mayor, or other political figure) are much more successful in implementing the

energy code.

Recommendation A: In the same way that DEDI and First Lady Beshear publicly recognizes ENERGY

STAR home achievements, DEDI and the First Lady (or Governor Beshear) could give public

recognition to those local governments that are taking leadership roles in adopting more stringent

codes for municipal owned buildings. Work with Mayors, regional planning commissions, the

Kentucky League of Cities and/or other similar groups to raise the awareness of local government

leaders about what other municipalities are doing take a leadership role in energy efficiency. Key


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messages should include that energy codes and related policies allow local governments to

demonstrate fiscal responsibility for taxpayer dollars, stimulate jobs, and save people (and

governments) money through lower bills. Local governments that received federal funding should

be contacted to determine what efforts they may have made to increase energy code or energy

awareness in their communities. Awards, news releases and other publicity could be given to those

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